This blog was originally published July 6, 2023 and has been updated on November 5, 2024.

Upgrading to energy-efficient lighting is becoming a top priority for commercial spaces, and 2025 promises to bring even more incentives to help businesses make the switch. With several enhancements in LED lighting rebates set for next year, commercial property owners and managers have a unique opportunity to reduce operational costs and improve sustainability. In this guide, we’ll explore what you can expect from commercial LED lighting rebates in 2025, how they compare to 2024, and the trends shaping the future of lighting technology.

What to Expect in 2025

As we look forward to 2025, lighting rebate programs are adapting to support advanced technology, promote sustainability, and offer greater financial benefits. Here are some key changes to expect:

Stronger Emphasis on Sustainability

Market trends continue to show businesses are focusing on sustainable efforts. Financial rebates provide the perfect opportunity for businesses to cut energy usage and boost their bottom line. Some programs are specifically offered for eco-friendly options, such as recyclable materials and products with lower environmental impact. Through these measures, companies can position themselves as environmentally conscious by lowering their carbon footprints.

Increased Lighting Rebate Amounts

One of the most anticipated trends coming in 2025 is the increase in rebate amounts. In the upcoming year, we could see a 10-20% increase in rebates for lighting upgrades or LED replacements. This increase is to keep up with the rising cost of LEDs and the latest advancements in lighting technology. These rebates help incentivize businesses to switch to LED lighting and steer them away from alternative lighting, like incandescent and fluorescent.

Broader Coverage for Lighting Solutions
The programs coming in 2025 will cover a wider range of lighting technologies. Whereas in 2024, rebates covered basic lighting fixtures, 2025 is going to include smart and adaptive lighting technology, so businesses can install lighting controls and other energy management software. This will help property managers streamline building controls, lower energy consumption and increase their ROI.

Comparing 2024 and 2025: Key Differences in Lighting Rebates

To fully understand the impact of 2025 rebate changes, it’s essential to compare them to the rebate programs offered in 2024. Here’s how the two years stack up:

Expansion of Eligible Products

In 2024, lighting rebates were encouraging businesses to switch from incandescent and fluorescent to LEDs. During this past year, many states have been banning certain lighting products in efforts to get more consumers to switch to LEDs. Next year, the rebates are expected to broaden their focus to cover smart controls and building management systems so businesses have access to the latest technology and can advance their facility to become smart buildings. This reflects business trends towards sustainability and streamline operations to enhance efficiency.

Targeted Incentives for Large-Scale Commercial Projects

While 2024 rebate programs primarily targeted individual consumers and small businesses, 2025 is anticipated to provide specific incentives for large-scale commercial projects. This may include higher rebate values or additional funding for businesses looking to upgrade lighting across expansive facilities, manufacturing plants, or office complexes. By focusing more on larger projects, the 2025 rebate programs aim to amplify the impact of energy-efficient lighting, fostering substantial energy savings across high-energy commercial spaces.

Upcoming Trends in Lighting Technology

The 2025 rebates are a reflection of the direction the lighting market is taking. Lighting trends in the upcoming year include new technological advances and increased interest in sustainable efforts.

Integration with Smart Technology

Businesses are beginning to incorporate smart controls into their lighting strategies. This helps automate lighting throughout the building to cut down on energy usage, but also streamline operations to enhance efficiency. Examples of smart technology include occupancy sensors, scheduled timers for lighting and even daylighting. Smart technology allows building managers to oversee buildings controls from one central location. This can be done through Internet of Things, networked lighting controls and many more methods.

Advanced LED Technology

Newer LED products are not only more energy-efficient but also offer customizable lighting options such as tunable white light and color-changing LEDs. Tunable LEDs allow businesses to adjust the color temperature, providing flexibility for different work settings and times of day. With their potential to reduce energy costs and improve lighting quality, these advanced LEDs may be heavily featured in 2025 rebate programs.

By staying informed about these trends and aligning rebate programs with innovative technologies, 2025 lighting rebates aim to help businesses harness the full potential of modern lighting systems.

The Commercial LED Lighting Rebate Process

Claiming LED rebates is not always easy. It’s also time-consuming. Most rebates have a multi-step process that can take several weeks to complete.

Pre-Approval (4 – 5 weeks)

Rebate programs typically take around 22 days to pre-approve your lighting project. It’s a good idea to apply during the project’s planning stages. It helps ensure you receive the highest rebate amount and purchase eligible products. Here are the steps you need to take for pre-approval.

• Organize all technical documents
• Calculate your potential energy savings
• Prepare and submit the rebate paperwork
• Schedule a pre-inspection, if required

Installation (8 – 13 weeks)

After completing the pre-approval process, including submitting all necessary paperwork, the installation phase is the next step. This stage of the rebate process is relatively straightforward. It involves installing the approved LED products according to the rebate’s specifications. You must also meet project deadlines, however, you can file for an extension. If you make any design changes, these must be reported promptly.

• Notify the rebate program if any changes are made to your initial project design
• Follow all specific installation requirements
• Complete the project by the deadline
• File a project extension if needed

Final Rebate Submission (10 – 12)

The final stage of the rebate process involves gathering all documents and invoices relating to the installation. The paperwork is submitted to the rebate program and a final inspection may be necessary. After reviewing the documents, your rebate check will be issued.

• Organize all invoices and documents
• Prepare and submit the rebate paperwork
• Schedule a post-inspection, if necessary
• Ensure the rebate check is issued

LED Rebate Recovery in 2025

The 2025 commercial LED lighting rebates are set to deliver significant opportunities for businesses to save on costs while investing in sustainable and energy-efficient lighting solutions. With expanded eligibility, higher rebate amounts, and a focus on the latest lighting technology, the upcoming rebate programs offer a unique chance for commercial property owners to upgrade their lighting infrastructure and reduce operating expenses.

Incentive Rebate360 offers expert advice on finding rebates for your next lighting project and can walk you through the application process from start to finish. To speak with our experts about qualifying for financial incentives, contact us today by calling 480-653-8180, emailing [email protected], or scheduling a call that fits your needs by clicking the button below!